GV Krishna Reddy entrepreneur of the year

At the age of 76, most others prefer to sit back and savour the sepia-tinted moments of their life, but not GV Krishna Reddy, the GVK Group's patriarch. He won his first construction contract when he was barely 22 and more than five decades later, his infrastructure flagship has an asset base of over $5.24 billion.

But his penchant for taking risks hasn't diminished a bit. The entrepreneur now has ambitions to scale up his conglomerate to $10 billion over the next five years. His agility can only be matched with his razor-sharp memory as he recalls his early days.

"I was just 22 years old when I began my career in the construction business. We bagged the contract to build the Nagarjuna Sagar-Srisailam canal works, the largest masonry dam. It was one of the toughest jobs, but I gained enormous confidence to take risks. I tend to work harder and try to achieve targets wherever there are problems," says GVK.

It isn't easy to meet tough deadlines, hectic schedules and take up punishing site visits year after year and still be hailed as a people's person by your colleagues and peers. GVK's style of functioning has been described as "democratic".

He brings to the table five decades of experience that stands taller than his 6-feet-3-inch frame. His early morning meetings with the senior management help him stay connected with the business. The Osmania University graduate follows a hands-off approach regarding day-to-day operations, but is hands-on when it comes to issues relating to strategy.

He believes in visiting project sites himself. In fact, he is quite ready to attend meetings soon after an 18-hour flight from the US. "I am completely in awe of the way he works. Last week, he travelled to Delhi from Hyderabad, then flew to Dehradun by a chopper and returned to Hyderabad the same day after attending a host of meetings.

At his age, I wonder if I'd be able to do anything like this. The reason for GVK to achieve such growth is perhaps his passion. Also, the company has had the first-mover advantage in hotels and power plants in Andhra," says E Sudhir Reddy, chairman and managing director, IVRCL Infra.

A true entrepreneur that he is, he didn't limit himself to construction. He was the first player in the prelaminated particle board business; the first to build a five-star hotel in hometown Hyderabad and the first fast-track independent power producer.

From cash contracts to owner-developer, it has been an eventful and productive journey for the infrastructure flagship, GVK Power and Infrastructure (GVKPIL). Today, it has an asset base of over $5.24 billion (Rs 25,000 crore). It underwent consolidation in 2007, bringing all its power, airport and road assets under one roof — GVKPIL.

The list includes such trophy assets as the Mumbai International Airport, which operates the country's busiest airport and the Jaipur Expressway. The consolidation was meant to create a comprehensive infrastructure company, a large balance sheet and better positioning in terms of unlocking operating asset value.

GVK reckons that the Mumbai International Airport is the most difficult airport to build, as it has only 2,000 acres of land unlike the newer airports which are much bigger in area. But this has not deterred the group from looking at a larger role in India's airport business.

"The acquisition of an additional stake from L&T in the Bangalore airport is in line with our objective to foray into newer markets in the Indian subcontinent. We are now the largest shareholder in the Bangalore airport and are ready to increase our stake in the Mumbai airport too, if our partners are willing to offload their stake," he said.

The GMR Group, which also has its origins in Andhra Pradesh, has followed a similar course in the infrastructure space and comparisons are but natural. Both companies have a blend of power, energy and now airports. While GMR is more aggressive in its overseas plans after winning the Sabiha Gocken airport project in Istanbul, GVK is weighing its options. It is more bullish on opportunities that the domestic market presents.

"We have worked with the GVK group a couple of times, and they are a very professional, but conservative, organisation. They have consolidated their position in the power and hospitality sector," said Subbaraju, CFO, Nagarjuna Construction Company.

The group has also entered the special economic zones (SEZ) space, in collaboration with the Tamil Nadu Industrial Development Corporation, to develop a multiproduct zone in Perambalur district. It has a strong presence in hospitality, with three premium hotels in Hyderabad under management contract with the Taj Group.

"We are open to acquisitions, but would not like to burn our fingers. We are in talks with companies to acquire power plants. These are typically firms that are unable to implement the project. So, we take over at the initial stage and try to implement them," said Mr Reddy.

The company took over Emergency Management and Research Institute, the social arm of the erstwhile Satyam. Mr Reddy rules out at foray into the IT sector, saying it is simply not the right time for new entrants. "A century ago, Jamshedji Tata was like me. But, I cannot say I will become like the Tatas tomorrow. It takes time to grow. If we have an ambition, sky is the limit," said GVK.

Clearly, Mr Reddy, the amicable chatterer and the business magnate, does not want to hang up his boots just yet, though he has already groomed his son Sanjay Reddy as managing director of Mumbai International Airport. GVK has miles to go before he sleeps.